General principlas of agency #2 Flashcards
Consumer
someone who uses or purchases a product or service
Customer
you don’t own fiduciary duties but you own them honesty and fairness
Client
you own fiduciary duties (OLD CAR)
Fiduciary
is someone in a position of trust who own loyalty to another
Agent
someone who acts on behalf of someone else
Universal agent
has broad authority to act on behalf of a principal, such as someone who has the power of authority
Principal
is the same thing as a client
a special agent (aka limited agent)
has limited authority to act on a client’s behalf, such as a real estate agent or an escrow officer. this type of agent cant bind a client into a contract
A general agent
Is responsible for handling all dealings in a given area for a client, such as a property manager. This type of agent may bind a person into a contract
Single agency
licensee own undivided loyalty to the client. Licenses represent one party, either the seller or the buyer
dual agency
a licensee represents the buyer and the seller in the same transaction
Single - license dual agency
is when a single licensee represents both the seller and the buyer in the same transaction
Note: this form of dual agency is NOT practiced in Maryland
dual - licensee dual agency
two separate licensees from a single firm each represent one party (buyer or seller) in the same transaction
sub-agency
is a licensee who works for one firm, but who is engaged by another firm to perform agency functions on behalf of that firm’s client.
Fiduciary responsibility’s
own to clients NOT customers. non-agents don’t have fiduciary duties. The duties include the acronym OLD CAR
obedience loyalty Disclosure Confidentiality Accountability Reasonable skill and care
Power of attorney (POA)
Is a legal document that grants legal rights and powers from one person (the principal) to another to make decisions on behalf of the principal.
Express agency
Is an agency relationship that understands and agreed to by the parties. Spoken or written words create an express agency
Implied agency
The action of the parties creates implied agency
Ratification
is accepted after the fact, either through signing paperwork or through the party’s actions.
Estoppel
prevents one party from suing another
Listing contracts (agreement)
should be in writing for clients’ protection. They almost always require a definite end date
Exclusive agency
agreements allow only one brokerage to market and sell the property. If the seller finds her own buyer, no commission is paid to the brokerage
Exclusive right to sell
agreements provide the listing agent with a commission no matter who brings the buyer to the transaction. It includes definite start and end dates
Open listing
The seller works with multiple agents only the agent who successfully brings the buyer gets a commission
agency agreements can terminate in five different ways
Expiration, completion, by force of law, thought the destruction of the property or death of the principal, and by mutual agreement
Maryland laws does not recognize ______ relationship in real estate transactions
Non agency
A non agent
Known as a facility or a transaction broker typically acts as the middleman to consumers in real estate transactions
Duties own to costumer (DRHP)
- Disclosure of material facts 2.reasonable care
3. honesty and fair dealing 4.prompt presentation of all offers in control
Designated agent
Two agents from one firm represent opposite sides of a transaction (broker is dual agent)
(Another word for dual agency)
Dual agency is only allow in Maryland through the use of ______-_______ agents or
Intra company agents (ICAs)
Which fiduciary duty is imposible with dual agency
Undivided loyalty
As you know, you must obtain the client’s informed consent for dual agency when entering into an agency agreement with them. At what point do you need to have them reaffirm their consent?
Prior to entering into a contract for a transaction that involves both parties being represented by the same brokerage
Informed consent
Means that all parties fully understand the ramification and purpose of dual agency and give the rent and consent to be represented by the intra company agent (ICA
Maryland real estate law requires you to obtain your clients and form consent for dual agency that what must you obtain this consent?
At the time you enter into the list / buyer agreement with the client
Broker
A person or entity with brokers license. The broker must display their license at all branch locations. It will store all license for all sponsor salesperson and associate brokers that
multiple brokers allowed, with separate their broker’s licenses
They complete 15 hours continuing education every 2 years
Every license must carry there ______ at all times when doing business and they must show it on demand
Poket card
The Puckett cart must include the licenses theme and business address also includes the sponsor broker’s name and address
You have ____ years to reinstate your license after it expires
Three years 3
Maryland has reciprocal licensing agreements with two states those are ______ and _____
Oklahoma and Pennsylvania
Maryland law defines broker as
An individual who provides real estate broker services
Agency agreements in Maryland must be in Britain in order to be enforceable _____ has not been recognized in Maryland
Implied agency
All real estate licensing must keep copies of documents for at least ____ years
5 years
A timeshare estate
Is a piece of real estate owned by multiple, unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one to two week intervals during the year
Government like property taxes aas a revenue source because ____
Property values, and therefore taxes, tend to remain stable
What factors directly affect and adjustable rate mortgage?
Rate, index, and margin
